On December 22, there's something worth noting for crypto players - the Federal Reserve plans to inject $6.8 billion into the financial market tonight at 10 PM Beijing time through repurchase agreements.
And this has already been the Nth time in the past 10 days; within 10 days, the Federal Reserve has injected a total of about $38 billion, which is said to be part of year-end liquidity management.
First, let's talk about what a repurchase agreement is. Simply put, this is the core tool used by the Federal Reserve to manage daily financial liquidity.
The operational logic is quite straightforward: the Federal Reserve provides cash loans to banks, which must use high-quality collateral - usually government bonds - as security; banks will quickly repay the loans and retrieve the collateral, and the entire process usually takes just one day.
In simple terms, it’s a temporary 'water injection' for the market to cope with the common liquidity tightness at the end of the year, and it’s also related to the recent adjustments of the Federal Reserve's permanent repurchase tools. Officially, it's all standard procedure with no deeper meaning.
Interestingly, some cryptocurrency investors see this as a positive signal for risk assets.
Why? Think about it, if liquidity is injected into the market, there will be more money circulating, borrowing costs will decrease, and hot money may flow into risk assets like the stock market and cryptocurrency market.
Especially at the end of the year, institutions need to adjust their positions, and retail investors are looking for places to invest. The sudden increase in liquidity can easily push up risk appetite. The crypto circle is focused on this, as it feels like 'water' has arrived, which could lead to more intense speculation.
Of course, the authorities repeatedly emphasize that this is a routine operation, but the market never strictly follows the 'official script'.
For ordinary players, rather than getting caught up in whether it's a positive signal or not, it’s better to understand the underlying logic—year-end liquidity management is the norm, but the direction of money flow is the invisible driver influencing short-term sentiment in cryptocurrency prices.$BTC #比特币流动性 #美国非农数据超预期 #ETH走势分析
